The biggest problem is that SMBs only tweak their keyword buys only every 90 days or so, said WordStream chief tech officer Larry Kim, and don't spend enough time zeroing in on relevant lead generation tactics.

"They need to spend at least 20 minutes a week optimizing their AdWords account," he explained. "If you are a New England insurance company, you should [buy] 'Boston motorcycle insurance' and terms like that instead of stuff that's less targeted."

What's more, Kim's firm found that 95 percent of SMBs don't have a functioning click-to-call button for their search ads, eliminating the opportunity for countless phone leads.

WordStream explored 500 of its SMB search marketing clients in its study, which extrapolates that up to $1.2 billion might be wasted across all brand categories.

The biggest problem is that SMBs only tweak their keyword buys only every 90 days or so, said WordStream chief tech officer Larry Kim, and don't spend enough time zeroing in on relevant lead generation tactics.

"They need to spend at least 20 minutes a week optimizing their AdWords account," he explained. "If you are a New England insurance company, you should [buy] 'Boston motorcycle insurance' and terms like that instead of stuff that's less targeted."

What's more, Kim's firm found that 95 percent of SMBs don't have a functioning click-to-call button for their search ads, eliminating the opportunity for countless phone leads.

WordStream explored 500 of its SMB search marketing clients in its study, which extrapolates that up to $1.2 billion might be wasted across all brand categories.